This a question to solve for accelerated depreciation. The dialogue is from the question in Solphia.org's Accounting course.

Unit 4 - Challenge 1 Depreciation

The machine that was used to produce notebooks cost $750,000 when it was purchased new one year ago. It has an expected life span of 10 years. The income statement showed the straight line deprecation rate as 10%.

Using double declining balance depreciation, the book value of the machine at the end of year two is __________.

• a.)$480,000
• b.)$330,000
• c.)$150,000
• d.)$600,000